For the tenth year running, Deloitte’s “Swiss Watch Industry Study 2023” presents an analysis based on interviews with industry executives and experts, in parallel with its consumer survey of key markets. One of the conclusions presented by the consulting firm is the growing importance of face-to-face customer experiences. Other takeaways include the fact that the direct, in-store relationship is favored over online, even if, in these post-Covid times, consumers initially enquire online about the world of the watch brands. Another underlying trend is the adoption of sustainable development principles that are no longer a forced response to consumer pressure, but are now an integral part of corporate strategies. These strategies must now consider social media not only as a vector for personalized information and recommendations but also as a preferred sales channel for the younger generations. It is also noted that many have made the second-hand market an essential component of the industry.
The world’s most populated country
With this latest study, Deloitte also focuses on the Indian Market, a first in 10 years. During this decade, the subcontinent has already been repeatedly identified as the future watchmaking El Dorado by the industry’s watchmakers. In reality, however, such prospects have yet to materialize for a market that currently ranks 22nd in Swiss watch exports by country, with CHF 154 million achieved between January and September 2023. This is a far cry from the CHF 2.1 billion generated by China over the same period, a country which last April lost its top spot as the most populous state on the planet to India and its 1.43 billion inhabitants, according to United Nations figures. And yet, as the Deloitte survey reveals, watchmakers want to believe. As does the consulting firm, which points to 18% growth in watch exports to this destination over the first nine months of the year compared to the same period of 2022, or 56% compared to 2021.
A stronger presence
Not all obstacles have been removed, starting with the requirement to work with an Indian partner to set up and develop a distribution network. But the economy is on the move, according to Deloitte, and with it, consumer spending, particularly on luxury goods, which should reach USD 6.6 billion this year and USD 10.9 billion by the end of the decade. The same applies to is predicted to reach 1.6 million in three years, according to Credit Suisse projections. Under these circumstances, all the major Swiss brands are already represented in the country, mainly through networks of authorized dealers or multi-brand retailers such as Art of Time, Ethos, Helios, Kapoor Watch, or Zimson. These retailers are currently expanding in the country, not to mention investments in new shopping centres, such as Jio World Plaza, which will open new doors this year in Mumbai. The expected annual growth for these temples of consumerism, which also happen to be the preferred destination of Indian shoppers, is at 17% on average between the years 2022 and 2028.
Watch enthusiasts
For Deloitte, the emergence of a middle class, albeit still in its infancy compared to some Asian countries, is nonetheless a positive factor, synonymous with increased purchasing power for many consumers. Yet Indian consumers are the most convincing in their desire to acquire a watch, whether traditional (quartz and mechanical) or “smart”. They are now ahead of UAE nationals in their attachment to the symbolic value of watchmaking “jewels”. Deloitte concludes: “India is set to become the world’s third-largest economy by 2027. The country’s consumers are noteworthy for their sheer numbers, but above all for their growing desire for luxury products that reflect their identity and values. We believe that India will be among the top 10 export countries for Swiss watchmaking within the next ten years.”
